Longtime DeFi platform Stake DAO has become the latest victim in an increasingly worrying run of DeFi hacks.

In what appears to be a private key compromise, an attacker was able to mint 5.4 trillion of the project’s vsdCRV tokens on the Arbitrum network.

Blockchain monitoring firm Blockaid explains that an attacker used the compromised deployer to reconfigure the token’s LayerZero OFT contract to grant minting authority to an “attacker-deployed malicious contract.”

A major experiment led by the Bank for International Settlements (BIS) found that tokenization could help fix some of the biggest pain points in cross-border payments, from slow settlement times to costly reconciliation between banks.

Project Agorá, a joint effort between the BIS, seven central banks and more than 40 private financial institutions, concluded that tokenized central bank reserves and commercial bank deposits could support atomic settlement across currencies and jurisdictions.

Atomic settlement refers to transactions completing on an “all-or-nothing” basis, reducing the risk that one side of a cross-border payment fails while the other succeeds.

The initiative involved the Federal Reserve Bank of New York, Bank of England, Bank of Japan, Swiss National Bank and other central banks alongside large commercial banks and financial firms.

Project Agorá participants now plan to move beyond simulations toward testing real-value transactions involving some currencies and institutions. The Bank of Canada also joined the initiative this week.

The findings landed as global banks and asset managers ramp up their own tokenization efforts. DTCC, Wall Street’s clearing house, plans to roll out its tokenized settlement infrastructure for stocks, ETFs and U.S. Treasuries, while Nasdaq and NYSE-owner Intercontinental Exchange are both developing blockchain-based systems for tokenized stocks.

A cross-border transfers can bounce between several intermediary banks before reaching its destination at present, often taking days to settle and creating operational risks along the way. Using tokenization and blockchain rails could mean fewer delays and failed payments in the global financial system, the report showed.

The BIS, often described as the “central bank for central banks,” has become increasingly active in blockchain and tokenization research as governments and financial firms rethink how money and securities move globally.

The agency, however, warned that stablecoins — digital currencies tied to fiat money issued on blockchain by private companies — could pose risks to the financial system, urging to speed up efforts to regulate the sector.

TLDR:

• Hyperliquid generated nearly $800M revenue in 2025 without raising venture capital funds.
• The HYPE token reached a $13B market cap despite the platform remaining blocked in the U.S.
• Hyperliquid processed $2.9T in perpetual futures volume during 2025 across global markets.
• Grayscale believes HYPE remains undervalued compared with traditional exchange businesses.

Grayscale Research has identified Hyperliquid as the standout success story in modern digital assets. The decentralized exchange generated approximately $800 million in revenue during 2025.

It reached the 8th largest crypto asset by market capitalization. All of this was achieved without a single dollar of venture capital funding.

Notably, the platform remains geoblocked in the United States, yet its growth trajectory has drawn serious institutional attention.

How Hyperliquid Built a $800M Revenue Machine Without VC Backing

Grayscale’s report frames Hyperliquid’s rise as something the digital assets industry rarely produces. The platform launched publicly in August 2023, before Bitcoin ETPs arrived in U.S. markets.

It built its foundation during a relatively quiet period for decentralized finance. That timing proved deliberate rather than coincidental.

Rather than raising venture capital, Hyperliquid distributed approximately 30% of its HYPE token supply directly to early users. That decision shaped who owned and cared about the platform from day one.

The initial holder base consisted of traders, builders, and community participants. They had already used the product before they ever held the token.

This funding model created a different kind of alignment than most crypto projects carry. There were no VC lockup schedules or insider allocations waiting to pressure the market.

Trust, which Grayscale notes is scarce in this category, became a genuine competitive advantage. Users perceived Hyperliquid as a platform building for them rather than extracting value from them.

Grayscale’s report also points to product focus as central to the revenue story. Hyperliquid was engineered specifically around perpetual futures trading. It was not a general-purpose chain that happened to support a trading application.

That narrow focus allowed the team to prioritize exactly what active traders demand: fast order entry, deep liquidity, and reliable execution.

The Platform That Geoblocks America Yet Ranks 8th by Market Cap

Perhaps the most striking detail in Grayscale’s report is what Hyperliquid achieved while locked out of the United States.

U.S. users remain unable to access the platform due to regulatory ambiguity around perpetual futures and decentralized exchanges.

Despite that, HYPE carries a circulating market capitalization of roughly $13 billion. That places it among the eight largest crypto assets globally by market value.

Grayscale processed $2.9 trillion in perpetual futures volume across the platform during 2025. Open interest currently sits at around $7 billion.

That positions Hyperliquid as the third or fourth largest crypto perpetual futures exchange by open interest. All of this activity came exclusively from non-U.S. participants.

The report further notes that Hyperliquid has moved well beyond crypto-native markets. Through its HIP-3 framework, third-party developers can deploy perpetual contracts on traditional assets.

Oil perp volume on the platform surpassed $4 billion in a single 24-hour session on April 9, 2026. During that window, it briefly exceeded Bitcoin perpetual volumes on the same platform.

Bloomberg described Hyperliquid as a round-the-clock venue for leveraged commodity bets. An officially licensed S&P 500 perpetual contract now trades on the platform every day of the week.

Silver perp volume reached over $4 billion daily during the February 2026 price spike. Grayscale frames these data points as evidence that Hyperliquid is evolving into a 24/7 market structure layer for real-world assets.

What Comes Next for Hyperliquid and the HYPE Token

Grayscale’s report identifies U.S. regulatory clarity as the most consequential near-term catalyst for Hyperliquid. The Commodity Futures Trading Commission has recently signaled movement toward frameworks that could accommodate perpetual-like products.

Coinbase, Kraken, Robinhood, and Kalshi are already positioning for compliant perp offerings. That momentum points toward a market structure shift that could directly benefit Hyperliquid.

The HYPE token currently trades at roughly 14 times earnings over the four quarters ending Q1 2026. Grayscale compares this to high-growth public exchange businesses like Robinhood and Interactive Brokers.

Those companies trade at multiples between 35 and 50 times earnings. That gap forms the basis of Grayscale’s view that HYPE offers meaningful upside over time.

Fee mechanics reinforce the token’s value case. Around 99% of platform trading fees flow into an assistance fund that converts fees into HYPE and burns them.

Because burns consistently exceed new token issuance, circulating supply has trended lower. Grayscale draws a direct parallel to share buyback programs in traditional equity markets.

Risks remain part of the picture Grayscale presents. HYPE carries annualized price volatility near 80%, roughly 40 percentage points above Bitcoin.

The platform runs on closed-source software with a more centralized validator set than comparable blockchain networks. U.S. market access remains contingent on regulatory decisions that have not yet reached a final form.

Growing fast, but still nascent: S&P lays out the promise and pitfalls of on‑chain vaults

S&P Global Ratings released a primer this week examining the role of digital asset “vaults”—on‑chain pooled investment vehicles that issue share tokens and deploy capital according to a defined strategy. The report highlights rapid expansion in deposits and says vaults could migrate beyond crypto-native uses to handle tokenized real‑world assets (RWAs) and functions traditionally performed by funds and intermediaries. At the same time, S&P warns that leverage mechanics, uneven disclosure practices, technical failure modes and regulatory ambiguity could constrain their path to wider institutional adoption.

What vaults are and how they have grown

Vaults aggregate deposits and allocate them across strategies via smart contracts, or a hybrid of automated code and discretionary manager decisions. Investors receive tokenised shares that represent a proportional claim on the pooled assets and any returns. That structure makes vaults a different primitive from direct asset ownership: they can implement dynamic, multi‑asset strategies, reallocate automatically and integrate with other protocols.

Market metrics cited by S&P show the space has expanded sharply: total deposits in vaults rose to about US$131 billion as of April 2026, from roughly US$24 billion in April 2023. But the firm notes that approximately 94% of current activity is concentrated in crypto‑native strategies such as staking, crypto‑backed lending and yield aggregation.

Why vaults might matter to capital markets

S&P argues vaults could eventually support a wide range of financial functions traditionally carried out by private credit funds, money market vehicles, hedge funds and more. The combination of automation, composability and secondary‑market liquidity turns pooled on‑chain assets into reusable building blocks: vault shares can be traded, posted as collateral, or blended into composite strategies.

The report also points to a potential bridge to much larger markets. For example, tokens representing treasury or repo‑like instruments could be used as collateral on‑chain; because global repo turnover is many times the market capitalization of crypto assets, even modest uptake could materially increase vault activity.

Key risks S&P flags

Leverage and looping. Vault architectures and composability enable recursive reuse of collateral. Borrowed funds can be redeployed as collateral to generate additional exposure, a practice S&P calls “looping.” Looping can occur at the depositor level—similar to margin—or at the vault level, where curators’ actions raise leverage for all depositors. That amplifies returns in good times and can accelerate deleveraging and cascading liquidations during stress.

Technical failure modes. Reliance on smart contracts, external oracles and protocol integrations introduces risks not seen in traditional funds. Code bugs, oracle failures or integration errors can produce direct losses or disrupt settlement and rebalancing processes.

Disclosure and transparency gaps. While on‑chain transactions are visible, S&P notes that raw blockchain data is often hard to interpret and does not substitute for structured disclosures. Many vaults focus on headline yield figures and provide limited, non‑standardised information on mandate, allocation limits, leverage practices and governance. Where disclosures exist, mechanisms such as “time locks”—typically several days for concentration changes—are used to give depositors exit windows, but monitoring these changes can be resource intensive.

Regulatory ambiguity. Uncertainty over whether vault tokens constitute securities or other regulated instruments is a major constraint on institutional participation. Vault shares can represent tokenised ownership of RWAs or resemble investment contracts under legal tests used by regulators. Without clearer cross‑jurisdictional frameworks, many institutions remain cautious.

Market structure and consolidation

S&P observes early consolidation among vault curators and infrastructure providers. On one relatively mature platform, Morpho, two curators accounted for roughly 77% of deposits as of April 2026. The ratings firm expects further concentration as operators scale, risk and disclosure standards rise, and traditional finance entrants and established market makers expand their presence. Names mentioned as active or interested participants in the market include Apollo, Wintermute and Bitwise—signalling growing crossover between legacy asset managers, trading firms and crypto infrastructure players.

Implications for institutional adoption and next steps

The primer’s central contention is that vaults have technical and economic features that could make them useful building blocks for tokenised capital markets, but that a series of market‑level changes is likely required before large institutional flows arrive. Those include clearer regulatory guidance, more standardised disclosures and independent operational controls—custody, audited smart contracts, resilient oracles and third‑party risk engines. Without those, S&P warns, vaults risk remaining a predominantly crypto‑native toolkit rather than forming the plumbing for broader financial markets.

For market participants and policymakers, S&P’s analysis provides a roadmap of trade‑offs: vaults can improve capital efficiency and liquidity, but the same composability that delivers benefits also increases interconnectedness and systemic risk. How participants, platforms and regulators respond will determine whether vaults evolve into core market infrastructure or remain an increasingly sophisticated corner of the crypto ecosystem.

At the recent Senate Banking markup of the Digital Asset Market Clarity Act (CLARITY), Senator Angela Alsobrooks (D-MD) shared a story that should resonate with every parent in America. She spoke about her twenty-year-old daughter and her daughter’s generation – their intuitive interest in digital assets and their desire for a modern financial system that offers both opportunity and protection.

It underscored the growing urgency and gravity surrounding digital asset policy in Washington. “The digital revolution is upon us,” Senator Alsobrooks said. “It’s happening with us or without us. We have a responsibility to regulate it to create rules of the road.”

Her remarks reflected the growing recognition that the U.S. can no longer afford to approach digital asset policy reactively. This legislation is not just about the America of today; it is about tomorrow. We owe it to our children and the younger generation to get this policy right.

Chairman Tim Scott framed the debate through the lens of opportunity, faith and the American dream for working families. Senator Cynthia Lummis, one of Congress’s earliest bitcoin champions, emphasized the bipartisan work behind the legislation. Even senators who withheld support at this time, including Senator Lisa Blunt Rochester, spoke thoughtfully about how engaged her constituents are with this technology and emphasized the importance of legislation that ensures their protection.

The question now facing us is whether the U.S. will lead in shaping that future or will neglect that responsibility.

The 15-9 vote to advance Clarity to the Senate floor underscores three critical realities for the future of the American economy.

First, serious bipartisan policymaking regarding digital assets is not only possible but is already happening. The markup was a testament to the fact that credible policy and thoughtful engagement can still move Washington forward. Even senators who ultimately did not vote in favor of the bill, including Senator Mark Warner (D-VA), expressed their intention to continue working toward a constructive path forward.

The desire of leaders like Senators Scott, Lummis, Tillis, Alsobrooks, Gallego, Hagerty, Moreno and others to bridge the gap – including on the complex issue of stablecoin yield – shows that a bipartisan path is the only durable way forward.

Second, digital assets and the blockchain are here to stay. As articulated throughout the hearing by Senators on both sides of the aisle, the debate over the viability of digital assets is over. The only question is whether the U.S. will lead in shaping the future of digital finance or cede that leadership to others.

Nearly 68 million Americans, about one in five, already own digital assets. New Harris polling shows the number has increased by 12 million in the past year alone, putting American holders closer to one in four. They are teachers, construction workers, veterans, entrepreneurs and small business owners, with a third Gen Z and another third millennials. They use digital assets to send money to family members, make purchases and plan for their financial futures. Eighty-three percent of all American holders agree that stronger regulation is needed to protect consumers. Yet 88% of global crypto exchange activity occurs on foreign exchanges beyond U.S. supervision. Americans deserve the protections, clarity and oversight that only a federal framework can provide.

Finally, Congress must finish the job. The time is now. It is imperative that the full Senate act promptly.

The GENIUS Act established the payment layer through stablecoin legislation, but without Clarity to provide the market structure, trading platforms oversight and asset classification needed to support it, the U.S. risks leaving the job unfinished. As Treasury Secretary Scott Bessent has rightly noted, stablecoins without a broader market structure are a “foundation without walls.” If we fail to act, we risk sending the next generation of American innovation and the talent, investment and tech that comes with it, to foreign jurisdictions.

This important work is the industry’s responsibility as well. Comprehensive market structure will not arrive because we asked for it; it will arrive because we match the seriousness Congress has shown. The time is now to continue engaging substantively and constructively with concerns raised by members of Congress. Doing so is not the obstacle to the work; it is the work.

The markup proved that the momentum is with us. The resolve in that room showed that Washington recognizes the high stakes for American competitiveness and the future of digital finance. We have the mandate, bipartisan support, and the duty to ensure that the future of digital finance is unambiguously American.

America has long led the world because it has embraced innovation, markets and the rule of law. The window is open. The only question is whether we will close it on our terms.

A vote for Clarity is a vote for regulation – the rules this generation needs and the rules the next generation will inherit. Congress now has the chance to shape this technology rather than chase it. Let’s finish the job on the Senate floor.

A new report from Grayscale Research evaluates Hyperliquid, a decentralized finance platform that aims to bring high-throughput derivatives trading on-chain while preserving blockchain custody and transparency. The note focuses on the economics of the platform’s native HYPE token, the expanding product set that now includes spot and traditional-asset futures, and what the project could mean for the broader migration of trading activity from centralized exchanges to on-chain venues.

What Hyperliquid is building

Hyperliquid began by targeting perpetual futures, a lucrative and liquidity-intensive market dominated by centralized exchanges. The project has prioritized matching the performance expectations of professional traders – low latency, tight spreads and predictable execution – while operating onchain. To achieve that mix, Hyperliquid employs design choices intended to reduce friction between on-chain settlement and off-chain-like performance.

Beyond perpetuals, the platform has opened to permissionless third-party development and expanded into spot trading, futures on traditional assets, and outcome-style markets that resemble prediction markets. That modular approach is consistent with several DeFi projects that seek to attract external builders to increase product depth and diversify fee sources.

Grayscale’s focus: HYPE token economics

The Grayscale report centers on the HYPE token and how its economic design aligns with platform growth. Rather than presenting price forecasts, the research examines mechanisms commonly used to tie token value to platform activity, such as fee-sharing, protocol-owned liquidity, staking incentives and governance rights. Grayscale frames these mechanisms in the context of Hyperliquid’s product roadmap and potential revenue pools.

Token economics matter for platforms like Hyperliquid because they affect incentives for liquidity providers, market makers, and governance participants. Well‑calibrated token mechanics can improve fee capture and reduce reliance on external liquidity; poorly designed incentives can fragment liquidity or introduce speculative volatility that undermines trading utility.

Industry context: why on-chain derivatives matter

The examination of Hyperliquid comes amid growing interest in on-chain derivatives. Traders and institutions are increasingly evaluating whether blockchain-native venues can deliver the speed, capital efficiency and risk controls they expect from centralized counterparts. On-chain derivatives promise advantages including transparent order books, verifiable settlement and the elimination of custodial counterparty risk.

However, moving derivatives on-chain also raises operational challenges. Matching throughput with blockchain finality, limiting extractable value such as front-running, and ensuring deep, concentrated liquidity across products are nontrivial engineering and market-structure problems. Hyperliquid’s approach seeks to bridge those gaps, but the broader market will judge on repeatable execution quality and capital efficiency.

Market opportunity and competition

Grayscale’s report notes that the market opportunity for on-chain trading expands beyond crypto-native derivatives, especially if platforms can list futures on traditional assets or host outcome-based markets. Entrants that can combine institutional-grade execution with regulatory clarity could attract order flow migrating away from centralized counterparties.

Competition is a factor. Established centralized exchanges retain deep liquidity and product breadth, and other DeFi projects and hybrid venues are pursuing similar technical and commercial propositions. Success will depend on user experience, cost structures, regulatory positioning and the ability to aggregate liquidity across venues and chains.

Risks and regulatory considerations

The report and the market environment underscore several risks. Token investments remain speculative and subject to high volatility. For platforms offering derivatives tied to traditional assets or outcomes, regulatory scrutiny is a significant consideration as authorities assess how existing securities and commodities rules apply to on-chain products.

Operational risks also persist: smart contract vulnerabilities, liquidity fragmentation that raises slippage, and potential centralization vectors if execution infrastructure is controlled by a small set of actors. Protocol teams must balance performance optimizations with decentralization and robust governance to avoid concentrated risk.

Implications for institutional adoption

If platforms such as Hyperliquid can consistently deliver low-latency execution with verifiable on-chain settlement and clear token-aligned incentives, they may broaden the universe of institutional counterparties willing to route more activity on-chain. That could reshape liquidity dynamics and the economics of trading venues, but the transition will be gradual and contingent on regulatory clarity and operational track records.

Bottom line: Grayscale’s analysis highlights why token design and execution performance are core to any on-chain trading platform’s prospects. Hyperliquid’s combination of high-throughput derivatives and a permissionless developer model presents an intriguing use case for on-chain markets, but adoption will hinge on addressing liquidity, governance and compliance hurdles as trading evolves away from centralized incumbents.

Disclosure: Grayscale’s publication includes standard disclaimers noting that digital asset investments are speculative and may result in partial or total loss. This article summarizes the themes reported by Grayscale and does not constitute investment advice.

AmericanFortress has launched a beta privacy infrastructure on Arbitrum, promising compliant, mixer-free transaction shielding for institutional and high-volume DeFi users.

AmericanFortress has rolled out its beta privacy infrastructure on Arbitrum, introducing a Send-to-Name system that uses human readable FortressNames and auto generated stealth addresses to conceal counterparties while preserving bilateral auditability on chain. The company frames the launch squarely at institutions and high frequency DeFi participants operating on Arbitrum, a Layer 2 network that has emerged as one of Ethereum’s largest venues for on chain derivatives and liquidity protocols. According to an Arbitrum Foundation transparency report, the network processed more than 2.1 billion cumulative transactions in 2025 with total value locked hovering near $20 billion and almost $10 billion in stablecoins, underlining the scale of the activity AmericanFortress is targeting.

“Financial infrastructure cannot scale institutionally if every transaction exposes counterparties, balances, and trading behavior in real time,” AmericanFortress CEO and CTO Michal Pospieszalski said, arguing that Arbitrum has become “one of the most important execution environments in crypto markets” and that the new implementation “delivers a privacy layer designed for serious financial activity without relying on mixers or compromising compliance requirements.” The system allows users to send assets to @names while the protocol generates one time stealth addresses between counterparties, shielding transaction flows from third party observers but keeping records available to those directly involved. On its website, the firm describes FortressNames as “the first human readable, send to name wallet and secure transaction infrastructure for digital assets,” designed to replace “vulnerable wallet strings with one time, stealth addresses” in a way that is “easy to use, fully compliant, and quantum proof”.

XRP (XRP) is down roughly 64% from its July 2025 multi-year high, but several onchain and technical indicators suggested the altcoin was due for a “strong price rebound.”

Key takeaways:

• XRP’s MVRV ratio fell to -47%, a level historically linked to strong market rebounds and accumulation.
• XRP Ledger transaction spikes suggest rising network activity and a possible macro price floor near $1.30-$1.50.
• XRP’s bullish falling wedge pattern projects a 134% price breakout to $3.10.

MVRV ratio: XRP is in an “extreme undervalued” zone

XRP’s market value realized value (MVRV) ratio, or the market cap divided by the realized cap, has dropped to levels that have historically aligned with accumulation zones and market bottoms.

The chart shows that XRP’s 30-day MVRV has now fallen to -47%, its lowest level since December 2020.

Related: XRP price risks 50% drop despite 9-day ETF inflow streak

This suggests that fear and frustration among investors have “reached rare extremes that have historically preceded strong rebounds,” onchain data provider Santiment said in a Tuesday post on X, adding:

“Historically, MVRV’s (average trading returns) will always average out to 0%, making this current level an extreme undervalued zone for $XRP. ”

XRP MVRV ratio. Source: Santiment

Deeply negative MVRV readings tend to appear when retail traders have largely given up, creating conditions where even small positive catalysts can trigger strong rallies.

While weak MVRV readings alone do not guarantee complete trend shifts, they “often signal that the majority of panic selling has already occurred and downside risk becomes more limited compared to potential upside,” Santiment added.

Meanwhile, XRP’s MVRV Z-score is hovering near zero, a level that historically aligns with accumulation zones and market bottoms, according to data from Glassnode.

XRP MVRV Z-score vs. price. Source: Glassnode

The last time XRP’s MVRV Z-score fell to similar levels in late 2024, it coincided with a macro market bottom at $0.30 before a rally of 500% to a multi-year high above $3. The gains were 215%, 94% and 1,050% in 2023, 2022 and 2021, respectively.

Analyst: XRP price “creating stable macro floor”

The XRP Ledger saw a massive transaction volume spike in April, suggesting that “deep ecosystem activity and accumulation are quietly building beneath the surface,” CryptoQuant analyst TopNotchYJ said in a Monday Quicktake note. 

“Massive, vertical spikes in transaction counts serve as early network leading indicators, predating explosive price expansions,” the analyst added.

In November 2019, a surge in transaction count preceded the 2021 rally from $0.15 to $1.79 (nearly 1,200%). A similar dynamic played out in July 2024, with a gain of 600% to its eventual cycle peak of $3.17 in mid-2025 from $0.50.

XRP is currently consolidating within the crucial $1.30–$1.50 accumulation zone, and the massive network spikes suggest that the price is “creating a stable macro floor,” the analyst said, adding:

“If history repeats and this current consolidation solidifies into a launchpad, a conservative 5x macro projection positions XRP’s next major target area between $7.50 and $8.00.”

XRP Ledger transaction count. Source: CryptoQuant

As Cointelegraph reported, other key XRP Ledger metrics, such as record whale wallet and monthly transaction counts, suggest that the XRP/USD pair was primed for a strong upward move. 

XRP falling wedge breakout targets $3.10

XRP price action is trading within a falling wedge pattern on the weekly chart, a structure typically associated with bullish reversals after a prolonged downtrend.

The price has been compressing between two descending trendlines since July 2025, with the lower boundary now being key support near the $1.30 psychological level

XRP/USD weekly chart. Source: Cointelegraph/TradingView

Meanwhile, the weekly relative strength index (RSI) has recovered from oversold conditions, suggesting that sellers are losing momentum. Historically, similar RSI conditions have preceded strong rebounds in XRP.

For example, XRP rallied as much as 660% between July and December 2024 following the RSI’s recovery from near oversold conditions. The gains were 95% in mid-2022.

A confirmed breakout above the wedge’s upper trend line at $1.50 could open the way for a run toward the measured target of the prevailing chart pattern at $3.1, about 134% above the current price. 

As Cointelegraph reported, buyers will have to break and sustain the XRP price above the $1.40-$1.60 resistance zone on the daily chart to confirm a long-term trend shift.